Cadbury chews on gum acquisition

Chocolate-to-soft-drinks group Cadbury Schweppes has confirmed it is in talks with Kraft Foods to buy its chewing gum and sweets business in France. The discussions concern the acquisition of a number of brands in the French confectionery market which is the seventh largest in the world. The acquisition would give Cadbury an overall market share of around 16% in that country.

Cadbury's chief executive John Sunderland said: 'Kraft Foods' strong brands would help us build critical mass in the French sugar confectionery market and give us entry into the profitable chewing gum segment.' Cadbury announced earlier this month that it was also interested in acquiring part of the Nabisco food empire in the US as part of its growth strategy.